Facebook has announced it is to buy Instagram - the popular photo-sharing smartphone app.

Facebook is paying $1bn (£629m) in cash and stock for the takeover.

Instagram was only launched in October 2010 - initially just for the iPhone before being offered as an Android app last week.

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Paul Kedrosky, a tech investor and author of the Infectious Greed blog, told the BBC: "I understand Instagram has 13 employees - so at $77m a head that makes it the most expensive business deal in history that I can think of."

I really need to get of my arse and create an awesome app. It may fail as most do, but at least I'll have tried.